DHS awards $117M contract for protective security services, with 7 bidders competing

Contract Overview

Contract Amount: $116,961,668 ($117.0M)

Contractor: Triple Canopy Inc

Awarding Agency: Department of Homeland Security

Start Date: 2021-10-01

End Date: 2024-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $106.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER(PSO)SERVICES FOR FEDERAL TRIANGLE COMPLEX IN WASHINGTON DC.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $117.0 million to TRIPLE CANOPY INC for work described as: PROTECTIVE SECURITY OFFICER(PSO)SERVICES FOR FEDERAL TRIANGLE COMPLEX IN WASHINGTON DC. Key points: 1. The contract value of $117 million over three years suggests a significant investment in security infrastructure. 2. With 7 bidders, the competition level indicates a healthy market for protective security services. 3. The firm-fixed-price contract type aims to control costs and provide predictable spending. 4. This contract falls under Security Guards and Patrol Services, a critical sector for government facility protection. 5. The duration of 1095 days allows for sustained service delivery and potential for performance evaluation. 6. The geographic focus on Washington D.C. highlights the importance of securing federal facilities in the capital.

Value Assessment

Rating: good

The contract value of $117 million for three years of PSO services appears reasonable given the scope and location. Benchmarking against similar contracts for federal facilities in high-cost urban areas like Washington D.C. would provide further context. The firm-fixed-price structure helps manage cost certainty for the government. Without specific per-unit cost data, a precise value-for-money assessment is challenging, but the competitive nature of the award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 7 bidders participating. This indicates a robust bidding process and suggests that multiple qualified vendors were considered. The presence of several bidders generally leads to more competitive pricing and a wider range of potential solutions, benefiting the government's ability to secure the best value.

Taxpayer Impact: A competitive bidding process for essential security services ensures that taxpayer dollars are used efficiently, driving down costs and improving service quality through market forces.

Public Impact

Federal Triangle Complex in Washington D.C. will receive enhanced security coverage. Citizens and federal employees working in the complex will benefit from increased safety and security. The contract supports jobs within the private security sector, contributing to the local and national workforce. Ensures the continuity of government operations by protecting critical federal infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if performance is consistently good and renewal is likely.
Reliance on a single contractor for critical security functions could pose a risk if service quality degrades.
Ensuring consistent adherence to security protocols and performance standards over the contract's duration.

Positive Signals

Full and open competition suggests a strong market and potential for competitive pricing.
Firm-fixed-price contract type provides cost certainty for the government.
The contract duration allows for stable service provision and performance monitoring.
Award to a known entity like Triple Canopy Inc. may indicate a track record of satisfactory performance.

Sector Analysis

The Protective Security Officer (PSO) services market is a significant segment within the broader security industry, driven by government and private sector demand for facility protection. This contract, valued at $117 million, represents a substantial portion of spending within the Security Guards and Patrol Services sub-sector (NAICS 561612). The market is characterized by numerous providers, ranging from large multinational corporations to smaller specialized firms. Government contracts often constitute a large share of this market due to the need for security at federal buildings and installations.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Triple Canopy Inc., may engage small businesses for subcontracting opportunities. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of specialized services that small businesses can provide within the security sector.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of Homeland Security's Office of Procurement Operations, with potential involvement from facility managers at the Federal Triangle Complex. Performance standards and service level agreements will be key to monitoring contractor performance. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Washington D.C. Federal Facility Security
Security Guard Services Contracts
Protective Services for Government Buildings

Risk Flags

Potential for service disruption if contractor performance falters.
Reliance on a single entity for critical security functions.
Ensuring consistent adherence to federal security standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $117.0 million to TRIPLE CANOPY INC. PROTECTIVE SECURITY OFFICER(PSO)SERVICES FOR FEDERAL TRIANGLE COMPLEX IN WASHINGTON DC.

Who is the contractor on this award?

The obligated recipient is TRIPLE CANOPY INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $117.0 million.

What is the period of performance?

Start: 2021-10-01. End: 2024-09-30.

What is Triple Canopy Inc.'s track record with federal security contracts?

Triple Canopy Inc. has a history of providing security services to the U.S. government, including significant contracts with agencies like the Department of State and the Department of Defense. Their experience often involves providing personnel, training, and security management solutions in complex and high-risk environments. While specific performance details for individual contracts are not always publicly available, their continued success in winning federal bids suggests a generally satisfactory performance record. However, like many large security contractors, they may have faced scrutiny or performance challenges on certain contracts, which would be detailed in agency performance evaluations or IG reports if publicly accessible.

How does the per-hour cost of these PSO services compare to market rates in Washington D.C.?

Determining the precise per-hour cost requires access to the detailed pricing structure of the contract, which is not fully disclosed in the provided data. However, given the firm-fixed-price nature and the competitive bidding process involving 7 bidders, it is reasonable to infer that the hourly rates are competitive within the Washington D.C. market. The cost of security services in major metropolitan areas like D.C. is typically higher due to increased labor costs, operational expenses, and demand. Benchmarking against publicly available data for similar security guard services in the region, adjusted for the specific skill sets and security clearances required for federal PSOs, would be necessary for a definitive comparison.

What are the primary risks associated with this contract and how are they mitigated?

Key risks include potential lapses in security coverage due to personnel turnover or inadequate training, contractor non-compliance with performance standards, and cost overruns if the fixed-price model is poorly managed. Mitigation strategies typically involve rigorous background checks and training requirements for PSO personnel, clearly defined performance metrics and service level agreements (SLAs) within the contract, regular performance reviews by the contracting officer's representative (COR), and robust oversight mechanisms. The firm-fixed-price structure itself acts as a cost mitigation tool, shifting much of the financial risk to the contractor. The competitive nature of the award also incentivizes the contractor to perform well to secure future opportunities.

How effective is the full and open competition in ensuring value for money for this security service?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer their best pricing and service offerings to win the contract. The presence of 7 bidders in this case suggests a robust competition, which typically drives down prices and encourages innovation. This process allows the government to select the offer that represents the best overall value, considering not just price but also technical qualifications, past performance, and other relevant factors, thereby maximizing the return on taxpayer investment.

What is the historical spending trend for protective security services at the Federal Triangle Complex?

Historical spending data for protective security services specifically at the Federal Triangle Complex is not provided in the current data. However, the award of an $117 million contract for a 3-year period (2021-2024) suggests a significant and ongoing need for these services. To understand historical trends, one would need to examine previous contracts awarded for security at this complex or similar federal facilities managed by DHS or other agencies in the D.C. area. This would involve analyzing contract databases for prior awards, their values, durations, and the contractors involved to identify patterns in spending and service requirements over time.

What are the implications of the firm-fixed-price (FFP) contract type for cost control and contractor performance?

The firm-fixed-price (FFP) contract type is designed to provide the government with cost certainty and to place the maximum risk and responsibility for controlling costs on the contractor. Under an FFP contract, the price is set and is not subject to adjustment based on the contractor's cost experience. This incentivizes the contractor to manage its operations efficiently and to control costs effectively to maximize profit. For this PSO services contract, it means Triple Canopy Inc. is responsible for delivering the specified services within the agreed-upon price, regardless of their actual costs. This can lead to better cost performance for the government but also requires careful specification of requirements to avoid scope creep or disputes.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RFP221QEC000004

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13530 DULLES TECHNOLOGY DR STE 500, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $130,480,613

Exercised Options: $119,801,357

Current Obligation: $116,961,668

Actual Outlays: $80,052,969

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP218DEC000018

IDV Type: IDC

Timeline